Mutual Funds and ETFs Flying High

Mutual funds and exchange-traded funds increased asset flows in November, according to a report by Morningstar Inc.

The investment research company reported Monday that total inflows into U.S. mutual funds rose to $350.4 billion, with $34.6 billion of these assets added in November.

Meanwhile, ETFs had $14.0 billion in asset inflows in November, bringing the year-to-date total to $77.8 billion. This is the ninth consecutive month of net inflows for the ETF industry, Morningstar said, and the busiest month so far this year for ETF providers. Providers have launched 24 new ETFs, bringing the year-to-date total to 116 new ETF launches.

The report showed that investors continued to favor foreign-equity funds over domestic-equity funds, with negative net flows for domestic-stock funds. Foreign-equity funds received more than $5.4 billion in assets.

For five months in a row and for the eighth time in 2009, Vanguard’s combined open-end and ETF monthly flows exceeded $10 billion. Yet Fidelity Investments saw net outflows for the second consecutive month.